Terry Lloyd and Joan Lopez organized Read More Store as a corporation; each cont

Terry Lloyd and Joan Lopez organized Read More Store as a corporation; each contributed $50000 cash to start the business and received 4000 shares of capital. The store completed its first year of operations on December 31 2011. On that date the following financial items were determined: cash on hand and in the bank $48900; amounts due from customers from sales of books $25000; unused portion of store and office equipment $49000; amounts owed to publishers for books purchased $7000; one-year note for $3000 signed on January 15 2011 and payable to a local bank. No dividends were declared or paid to the shareholders during the year.